M.D.C. Holdings up 5% on Goldman Sachs Upgrade
M.D.C. Holdings (NYSE: MDC) is trading higher on the session following a positive research report by Goldman Sachs. M.D.C. Holdings was upgraded from Buy to Conviction Buy and its price target was raised from $34 to $50.
Goldman Sachs stated, “Our channel checks indicate that Denver, the company's largest market, is witnessing strong sales growth and pricing appreciation as the inventory supply is at its lowest levels in years. We expect MDC's very strong 1Q2012 order growth to continue through the rest of 2012, outpacing the peer group average. MDC is in the early to midstages of its operational turnaround as it continues to normalize SG&A costs (we expect annualized SG&A cuts of 16% on sales growth of 37 %)."
M.D.C. Holdings is currently trading at $33.02, a gain of 1.63 or 5.13%.
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